World Bank Urges Developing Nations to Build Small AI That Runs on a Phone
The World Bank says developing countries should build compact AI models that work on basic mobile phones with poor connectivity, warning that the AI revolution will pass them by unless the technology is adapted to local needs.
The World Bank is pressing developing countries to build "small AI" models that can run on a mobile phone even with low connectivity, arguing the technology could speed up economic development from centuries to decades — but only if it is adapted to local needs [265254]. Paschal Donohoe, the World Bank's chief knowledge officer, made the case as Silicon Valley's biggest companies focus on increasingly sophisticated consumer products [265254].
The push comes as countries around the world wrestle with how to capture AI's benefits without being squeezed by the rivalry between the United States and China. In Southeast Asia, nations are being pressured to pick sides as Washington and Beijing build rival AI alliances, with a new report warning the pressure could slow AI development across the region and deepen divisions [265007]. The European Union, meanwhile, is promoting "trusted" and independent AI at an international summit in Dublin as the bloc faces criticism over whether it can close the gap with the US and China while keeping strict regulations [264155].
Analysts also warn that Western countries face a growing threat from AI developed in China and handed to businesses and governments almost free of charge, with experts saying the savings may come at a price of reduced security and unclear intentions [265238]. Chinese developers such as DeepSeek and Xiaomi release new versions of their "open-weight" models every month, allowing users to run the core software without paying an expensive ongoing licence fee [265238].
The stakes extend beyond economics. The United States and China must ensure their dialogue on AI produces real results rather than empty promises, with experts warning the talks risk becoming "hot air" without concrete action [265000]. US universities are also under pressure from both AI and the US-China rivalry, with Vanderbilt University's head saying campuses can no longer stay neutral in a tech cold war [264996].
For developing economies, the World Bank's message is that the size of the model matters less than whether it fits local conditions. Small AI that runs on a phone with low connectivity could bring the benefits of the technology to people and businesses that the biggest consumer products will never reach [265254].